IEA Report

4th May 2017

TCS- BUYBACK "BUY" 4th May 2017
After studying Wipro's (Direct Industry Peer) Buy-back Tendering pattern of last years, and on the basis of our analysis of various other buy backs
done in past, We have a positive view on this particular Buy-back.. We recommend retail shareholders "BUY" the stock around CMP of 2340/- for
tendering in Buy-Back. As per our fundamental analysis, near term downside risk is capped at 10% from current market price..Our analysis suggest
potential return of upto 6.8% safer arbitrage return (after adjusting 30% tax on offline transfer of shares) in this Buy-back.. The holding period would
be approx 45 days from now. ....................................... ( Page : 2-4)

"PART BOOK
IOC PROFIT"
4th May 2017
With the full commissioning of 15MMTPA Paradip refinery, Indian Oil Corporation is equipped to cater the growing fuel demand in the country.
Management expects 95% capacity utilization of Paradip refinery and volume growth of 3-4 MTPA going forward. Further management plans to
add 300 retail outlets every year to its existing network of 25000+ outlets. This will improve the volume of the company up-to a large extent. IOC
has equipped with BS VI standard HSD and BS VI standard motor spirit and prepared to start supply by Oct17. IOC maintains healthy dividend
payout of 33%. Currently stock is trading at 1.9x FY19 P/BV. Recently IOC rallied smartly and achieved our recommended target price of Rs 445.
We expect that the stock has discounted all the near term positives and at this price point the valuation seems little stretched, so we recommend
our short term investors to book profit at current levels but long term investors may hold this stock. .............................................. ( Page : 5-8)

IRB InvIT Fund "SUBSCRIBE" 3th May 2017

IRB InvIT FUND is India's first registered infrastructure investment trust. IRB has bundled six of its operational toll road assets and transferred them
to the Trust.
The Trust generates income in the form of toll collection from these road assets and interest on cash in their books. According to SEBI guidelines,
the Trust needs to distribute at least 90 percent of this distributable cash to the unit holders in the form of dividend, which will be tax free. The Trust
also is exempted from dividend distribution tax.
Based on projected cash flow on the basis of estimated growth in traffic and inflation-linked increase in toll charges, at an upper price band of IPO
(Rs 102), the dividend yield will be close to 10%. Excessive investor interest may also lead to some price appreciation post-listing.
Risk attached to the issue is that the regulatory framework governing infrastructure investment trusts in India is untested and the interpretation and
enforcement thereof involve uncertainties. .................................................... ( Page : 9 - 12 )

DABUR "Neutral" 3th May 2017

The company is facing headwinds in the international market which contributes approx. 25% of the total revenue. We expect it to continue for at
least next four quarters. Secondly companys management has indicated that going forward they will increase their media spending sharply which
may impact its margin going forward as in this competitive environment it will be slightly tough to increase prices. Considering subdued
International business growth and expectation of contraction in margin going forward on the back of higher Ad expenses we are Neutral on this
stock. .............................................. ( Page : 13 - 17)

BIOCON "Neutral" 2th May 2017

Biocon has discontinued drug Ambraxane from Indian and European markets which impacted 4QFY17s sales. On-going pricing pressure in US
market and rupee appreciation are key concerns for the company going forward. In last Dec. 2016, fire broke out at one of its facilities has
adversely impacted the EBITDA margin of the company by 130bps. Commercial sales of Insulin to US from Malaysian facility has started but we do
not have any clarity on the revenue front in this quarter. We do not expect any sharp improvement in revenue in near term. Currently, the stock is
trading at 4.74x FY17 P/BV. Considering the growth un-certainities in near term, we maintain Neutral rating in this stock.
..................................................... ( Page : 18 - 21)

MARUTI "Neutral" 28th Apr 2017

Successful new launches in the recent past have kept Maruti on the driving seat with the market share of 47%. With the commissioning of Gujarat
facility in the 4QFY17 waiting period for Baleno will reduce going forward. However, we expect that it will ramp up only by the second half of FY18
and till then the company has to incur high depreciation and fixed cost on the plant which may result in negative operating leverage for Maruti. We
expect 120 bps deterioration in RoE from 20.2% in FY17 to 19% in FY19E. Going ahead lower PAT growth compared to previous years gives us a
very little cushion on the valuation front and at the present price level valuation is little stretched. Hence, we change our rating from BUY to Neutral
with the target price of Rs. 6450 . ......................................... ( Page : 22-26)

Narnolia Securities Ltd IEA Edition No.- 1006

 INDUSTRY - IT
BSE Code - 532540
NSE Code - TCS
03-May-17 NIFTY - 9312
Comapany Data
BUYBACK OF EQUITY SHARES
CMP 2337
Target Price Attractive to
Retail Investor
DETAILS OF BUY-BACK
Previous Target Price
Upside - Boad Meeting Date 20-Feb-17
52wk Range H/L 2744/2052 Buy Back Size 56140351 equity shares
Mkt Capital (Rs Cr) 4,60,551 2.85% of total paid up capital
Av. Volume (,000) 103 Buy Back Size (Amount) 16000 cr aprox.
Buy Back Price/Share 2850/-
Buy Back Route Tender Offer
Share Holding patterns % Promoters Tendering their shares YES
3QFY17 2QFY17 1QFY17 Dispatch of Notice of Postal Ballot 16-Mar-17
Promoters 73.3 73.3 73.3 to Shareholders
Public 26.7 26.7 26.7 Result of Postal Ballot 07-Apr-17
Total 100.0 100.0 100.0 Record Date for Buy-Back 8-May-17
Ex-Date for Buy-Back 5-May-17
Stock Performance % 15%
Reservation for Retail Shareholders
1Mn 3Mn 1Yr
Absolute -5.0 -1.8 -8.0 No of shares reserved for Retail 8421053
Rel.to Nifty -5.9 -9.7 -28.9 Shareholders
125 TCS NIFTY
120 BUY-BACK ANALYSIS FOR RETAIL SHAREHOLDERS ( HOLDING
115 SHARES WORTH UPTO 2 LAC)
110
105 Retail Shareholding upto 2 lac as on 31 Dec 2017 64294312
100 Retail Shareholding upto 2 lac as on 31 Mar 2017 63300157
95 Change in Mar quarter (Post Buy-back announcement) 994155
90
85 Retail investors have a tendency of buying shares after the buyback
80 announcement, and upto the record date, however in this buyback, shares
Jul-16

Feb-17
Sep-16

Jan-17
Dec-16
Jun-16

Aug-16
May-16

Oct-16
Nov-16
Apr-16

Apr-17
Mar-17

are sold by retail investors, which can be seen as lack of interest for
participation in Buy-back, indicating higher acceptance in buy-back.

Our Target Case Scenario

No of shares 15825039 Reserved for Retail 8421053
tendered 25% of total retail shares Acceptance Ratio 53.2%
CMP 2340 Returned from Buy-Back 46.80%
Buy-Back Price 2850 Max Upside 21% 2850/- Buy-back Price
Upside 22% Max. Expected Downside 10% Share Price post Buy Back @ 2100
Anurag Arora Net Return in % 6.80% After adjusting Tax of 30%
Anurag.arora@narnolia.com Approx Holding Period 45 Days
Please refer to the Disclaimers at the end of this Report
Narnolia Securities Ltd
 TABLE SHOWING EXPECTED RETURN POTENTIAL IN DIFFERENT
SCENARIOS
Shares tendered
Calculated Acceptance Expected Market Expected Return to
Scenario as a % to total
Ratio Price post Buy-Back Investors (Tax Adjusted)
retail shareholders
2,050 18%
1 15% 89%
2,050 5.8%
2 25% 53%
2,050 0.6%
3 35% 38%
2,050 -3.3%
4 50% 27%
2,100 18.2%
5 15% 89%
2,100 6.8%
6 25% 53%
2,100 2%
7 35% 38%
2,100 -2%
8 50% 27%
2,150 18.4%
9 15% 89%
2,150 7.8%
10 25% 53%
2,150 3.2%
11 35% 38%
2,150 -0.2%
12 50% 27%
2,200 18.7%
13 15% 89%
2,200 8.8%
14 25% 53%
2,200 4.6%
15 35% 38%
2,200 1.4%
16 50% 27%

Wipro buy-back case study

We have observed from the Buy-Back done by Wipro which was completed in July 2016, where 5.5 crore
shares were held by retail shareholders ( holding shares worth upto 2 Lac as on record Date). Total shares
reserved for retail categary were 60 lac, however only 22.09 Lac shares were tendered by retail
shareholders, constituting only 4% tendering by total retail shareolders. Shares tendered were 37% of total
reserved portion for retail constituting 100% acceptance.

Please refer to the Disclaimers at the end of this Report

Narnolia Securities Ltd
View & Recommendation

After studying Wipro's (Direct Industry Peer) Buy-back Tendering pattern of last years, and on the basis of our analysis
of various other buy backs done in past, We have a positive view on this particular Buy-back.. We recommend retail
shareholders "BUY" the stock around CMP of 2340/- for tendering in Buy-Back . As per our fundamental
analysis, near term downside risk is capped at 10% from current market price..Our analysis suggest potential return
of upto 6.8% safer arbitrage return (after adjusting 30% tax on offline transfer of shares) in this Buy-back.. The
holding period would be approx 45 days from now.

Key Points to be noted:

Investor who wants to buy shares for tendering in Buy-Back will have to buy shares on or before 2 days prior to
Record Date which is 8th May 2017, in this particular Buy-back
Record Date means the date to decide the name of the investors eligible for Buy-Back..
Ex-Date means the day 2 working days prior to Record Date ( Last Date for Buying shares for Buy-Back)
According to terms of aforesaid Buy-Back, Last date for buying shares is5 May 2017.. Anyone who will buy shares
after 5 May will not be eligible for the Buy-back..
Retail shareholder means shareholder holding shares worth upto 2 Lac as on market closing on Record Date..
Investors should keep this point in mind while buying share in Buy-back..Investors should keep in mind that worth
of the shares bought in the buyback should not be above 2 Lac mark as on closing market hours on record
date, hence one should keep space for any potential upside upto the day of Record Date.

Narnolia Securities Ltd

 INDUSTRY - OIL MARKETING
BSE Code - 530965
NSE Code - IOC
06-May-17 NIFTY - 9311

Company Data Key Highlights of the Report:

CMP 443 Management expects higher capacity utilization at 15MT Paradip refinery
Target Price in 1QFY18, will boost volume and will improve GRM of the company.
Previous Target Price IOC has various major expansion plans which will increase the IOCs
Upside refining capacity to 104 MT from existing 80.7MT by 2022.
52wk Range H/L 448/196 Management expects 60km Jharsuguda-Ranchi pipeline to be
Mkt Capital (Rs Cr) 2,15,140 commissioned in FY18 which will increase offtake from Paradip refinery.
Av. Volume (,000) 526 Considering recent rallies in the stock price, valuation seems little
expensive.
RoE to maintain over 22% in FY17E
Currently, the stock is trading at 1.9x FY19E P/BV. We recommend Book
Profit' for the short term investors and long term investors may HOLD
ROE
25.0% rating in this stock.
22.3%
20.0% 19.9%
18.1% 17.1%
15.0% 14.8%

10.0% 10.4%
7.1% 7.1% Financials/Valu FY15 FY16 FY17E FY18E FY19E
5.0%
ation
Net Sales 4,49,509 3,55,927 5,81,260 6,05,700 6,09,900
0.0%
EBITDA 10,550 23,197 38,362 38,949 39,653
EBIT 5,331 17,278 31,289 31,275 31,142
Shareholding patterns % PAT 4,912 11,219 19,778 20,133 19,539
4QFY17 3QFY17 2QFY17 EPS (Rs) 20 46 41 41 40
Promoters 57.3 58.3 58.3 EPS growth (%) -31% 128% -12% 2% -3%
Public 42.7 41.7 41.7 ROE (%) 7% 15% 22% 20% 17%
Total 100.0 100.0 100.0 ROCE (%) 5% 16% 24% 22% 20%
BV 68,832 75,994 88,501 1,01,413 1,13,930
Stock Performance % P/B (X) 1.3 1.3 2.4 2.1 1.9
1Mn 3Mn 1Yr P/E (x) 18.2 8.5 10.8 10.6 10.9
Absolute 17.6 107.4 63.3
Rel.to Nifty 16.2 88.8 54.8 RECENT DEVELOPMENT:
200 IOC NIFTY National Green Tribunal (NGT) has confirmed its order dated August 2,
2016, permitting IndianOil to go ahead with its LPG import terminal
180
project at Puthuvypeen, Kerala. This will enable the company to cater
160 growing LNG demand in future.

140
IOC plans to come up with a 15-million-tonne (MT) refinery, with an
investment of about Rs 40,000 crore, at Nagapattinam in Tamil Nadu.
120 Currently, Nagapattinam has a 1-mt plant operated by Chennai Petroleum
Corporation (CPCL), an IOC subsidiary.
100
Oil companies to bear merchant discount rate fees on debit card
80
payments for fuel. The fee is 1% on credit card transactions and 0.25-1%
Jul-16

Sep-16

Feb-17
Jan-17
Dec-16
Jun-16

Aug-16
May-16

Oct-16
Nov-16
Apr-16

Apr-17
Mar-17

on debit card transactions.

IOC keen to buy 26% stake in GSPC's Mundra LNG terminal. With a view
ADITYA GUPTA to expand its gas business, IOC invests Rs. 4500 Cr in Mundra project.
aditya.gupta@narnolia.com
Please refer to the Disclaimers at the end of this Report
Narnolia Securities Ltd
 Quarterly Performance
Financials 3QFY16 4QFY16 1QFY17 2QFY17 3QFY17 YoY % QoQ% FY15 FY16 YoY %
Petroleum products 93,261 93,276 1,02,802 95,732 1,11,212 19% 16% 4,19,264 3,32,270 -21%
Petrochemicals 4205 5172 4683 4474 4714 12% 5% 20264 16992 -16%
Other business activities 2,758 2,925 2,247 2,836 2,940 7% 4% 17,176 13,651 -21%
Net Sales 82,676 78,401 86,081 80,370 93,117 13% 16% 4,49,509 3,55,927 -21%
Other Income 648 722 470 854 793 22% -7% 4,204 2,246 -47%
COGS 69,055 64,134 63,701 66,330 73,872 7% 11% 3,99,121 2,89,225 -28%
Employee Cost 1,716 1,288 1,772 1,872 1,813 6% -3% 7,662 8,228 7%
Other Expenses 6,550 8,230 6,925 6,397 9,483 45% 48% 32,175 35,277 10%
EBITDA 5,355 4,750 13,684 5,772 7,949 48% 38% 10,550 23,197 120%
Depreciation 1,191 1,439 1,435 1,505 1,554 30% 3% 5,219 5,919 13%
Interest 641 1,085 680 615 997 56% 62% 4,175 3,630 -13%
PBT 4,172 2,948 12,039 4,507 6,191 48% 37% 5,346 15,894 197%
Tax 1,549 1,255 3,770 1,385 2,196 42% 59% 2,143 5,653 164%
PAT 3,096 1,685 8,269 3,122 3,995 29% 28% 4,912 11,219 128%

Robust PAT growth in 3QFY17:

Profit after tax has increased by 29% to Rs. 3995 Cr in 3QFY17 as compared to Rs. 3096 Cr in the same
quarter in FY16.
Revenue from sale of Petroleum products has increased from Rs. 93261 Cr to Rs. 111212 Cr in 3QFY17.
Revenue from sale of Petrochemicals has increased from Rs. 4205 Cr to Rs. 4714 Cr in 3QFY17.
Revenue from Other business activities has increased from Rs. 2758 Cr to Rs. 2940 Cr in 3QFY17.
EBITDA(Rs. Cr.) EBITDA Margin PAT(Rs. Cr.) PAT Margin
16,000 18% 9,000 12%
16%
14,000 16% 8,000 10%
10%
14% 7,000
12,000
6,000 7% 6% 8%
10% 12%
10,000 10%
5,000
9% 6%
8,269

10% 4%
4%
13,684

8,000 7% 4,000 4%
6,591
6,285

6% 6% 8% 4%
10,287

6,000 3,000 2%
3,995
9,284

6%
3,122
3,096
7,949

2,000 2%
1,685

4,000
5,772

4%
5,355

4,750

1,000 -1%
1% 0%
666

2,000 2% -
(450)

- 0% (1,000) -2%

Concall Highlights:
Management expecting a volume growth of between 3- 4 million tonne(MT) going forward.
IOC's management indicated merger with Chennai Petro,but no timeline yet
All units of Paradip refinery are fully commissioned with capacity utilization of 80% in 3QFY17.Management
expects 95% capacity utilization by March 2017.
Management has guided for provisioning of Rs. 20000 Cr for the Entry tax. Out of which provision of Rs.
10000 Cr already made.
Capex guidance for FY18 is Rs. 19600 Cr and FY19 is ~ Rs. 25000 Cr.
Anticipated VAT for Paradip refinery is Rs. 150 Cr per month.

Please refer to the Disclaimers at the end of this Report

Narnolia Securities Ltd
 Investment Arguments:
Stabilization of Paradip refinery- All units of Paradip refinery are fully commissioned with capacity
utilization of 80% in Dec16. Management expects 95% capacity utilization in 1QFY18. It will improve
the refining volume by 13MTPA and will improve GRM in FY18.
Growth in Pipeline volume Evacuation through the Paradip- Jharsuguda-Raipur-Ranchi pipeline
has been started in the month of Jan17. Jharsuguda-Ranchi pipeline of 60Km is yet to be
commissioned. Management is optimistic to commission this pipeline in FY18. This will increase the
pipeline throughput by 3-4% to 21 MMT

Growth in Gasoline volume - Management indicated that volume growth of gasoline is gaining
traction from March17.Liquefied Petroleum Gas (LPG) volume is also growing at double digits. But,
diesel growth has remained flat.
Upcoming Projects- IOCL is investing Rs 34,000 Cr. on the petrochemical complex. The entire
petrochemical complex is expected to be commissioned by 2021. The polypropylene unit would have a
capacity of 7,000 kilo tonne per annum (KTPA) would be integrated with the oil refinery.
High Operational Efficiency- Paradip is expected to achieve GRM of USD 12/BBL post 95% capacity
utilisation. This will improve core GRM to USD 8/BBL.
LPG pipeline- The company is on track to construct 710km Paradip-Haldia-Durgapur LPG pipeline,
which will facilitate LPG transportation from Paradip and Haldia to the LPG bottling plants at Balasore,
Budge-Budge, Kalyani and Durgapur.
Volume Trend GRM Trend

Marketing Volume(MMT) Refinery Throughput(MMT) IOC GRM Singapore GRM

25 12.0
10.8
21 21 20 20 10.0
19 20 19 20 10.0
20 19 8.88.6
16 16 8.0 8.0 7.7 7.7
16 8.0
14 14 14 14 14 6.7
15 14 6.3 6.0
6.0 5.0 5.1
10 4.3
4.0 3.0
5
2.0 0.9
- -

View & Valuation

With the full commissioning of 15MMTPA Paradip refinery, Indian Oil Corporation is equipped to cater
the growing fuel demand in the country. Management expects 95% capacity utilization of Paradip
refinery and volume growth of 3-4 MTPA going forward. Further management plans to add 300 retail
outlets every year to its existing network of 25000+ outlets. This will improve the volume of the
company up-to a large extent. IOC has equipped with BS VI standard HSD and BS VI standard motor
spirit and prepared to start supply by Oct17. IOC maintains healthy dividend payout of 33%. Currently
stock is trading at 1.9x FY19 P/BV. Recently IOC rallied smartly and achieved our recommended target
price of Rs 445. We expect that the stock has discounted all the near term positives and at this price
point the valuation seems little stretched, so we recommend our short term investors to book profit at
current levels but long term investors may hold this stock.

Please refer to the Disclaimers at the end of this Report

Narnolia Securities Ltd
 Financials Snap Shot
Income Statement in Rs Crores Cash Flow Statement in Rs Crores
Y/E March FY16 FY17E FY18E FY19E Y/E March FY16 FY17E FY18E FY19E
Revenue from Operation 3,55,927 5,81,260 6,05,700 6,09,900 PBT 17,259 30,596 30,493 29,621
Change (%) -21% 63% 4% 1% (inc)/Dec in Working Capital 26,295 41,326 42,211 42,176
EBITDA 23,197 38,362 38,949 39,653 Non Cash Op Exp 5,865.2 7,073.2 7,674.1 8,511.2
Change (%) 120% 65% 2% 2% Int Paid (+) 3,629.71 4,043.85 4,043.85 4,043.85
Margin (%) 7% 7% 6% 7% Tax Paid 3,249.9 10,431.3 10,360.0 10,082.4
Depr & Amor. 5,919 7,073 7,674 8,511 others 7,724 (380) 1,251 2,209
EBIT 17,278 31,289 31,275 31,142 CF from Op. Activities 27,020 28,780 32,623 33,778
Int. & other fin. Cost 3,630 4,044 4,044 4,044 (inc)/Dec in FA & CWIP (4,244) (16,460) (20,666) (26,066)
Other Income 2,246 3,350 3,261 2,523 Free Cashflow 22,776.2 12,319.2 11,957.3 7,712.3
EBT 15,894 30,596 30,493 29,621 (Pur)/Sale of Inv 629 - - -
Exp Item 1,364 - - - others (10,190) (6,333) 1,000 4,000
Tax 5,653 10,431 10,360 10,082 CF from Inv. Activities (13,805) (22,794) (19,666) (22,066)
Minority Int & P/L share of Ass. 387 387 - - inc/(dec) in NW
Reported PAT 11,219 19,778 20,133 19,539 inc/(dec) in Debt (4,175.5) 5,861.1 - -
Adjusted PAT 10,340 19,778 20,133 19,539 Div Paid (inc tax) (3,590.0) (7,270.9) (7,220.1) (7,022.6)
Change (%) 128% 76% 2% -3% others (4,661) (4,044) (4,044) (4,044)
Margin(%) 3% 3% 3% 3% CF from Fin. Activities (12,426) (5,454) (11,264) (11,066)
Inc(Dec) in Cash 789 532 1,693 646
Add: Opening Balance 1,225 2,014 2,514 3,654
Balance Sheet in Rs Crores Closing Balance 2,014 2,546 4,207 4,300

Y/E March FY16 FY17E FY18E FY19E

Share Capital 2,428 2,428 2,428 2,428
Reserves 73,566 86,073 98,985 1,11,502 Key Ratios
Networth 75,994 88,501 1,01,413 1,13,930 FY16 FY17E FY18E FY19E
Debt 50,850 56,711 56,711 56,711 ROE 15% 22% 20% 17%
Other Non Cur Liab 18,020 18,020 18,020 18,020 ROCE 16% 24% 22% 20%
Total Capital Employed 1,26,844 1,45,212 1,58,124 1,70,640 Asset Turnover 1.5 2.1 2.1 2.0
Net Fixed Assets (incl CWIP) 1,28,434 1,37,821 1,50,813 1,68,368 Debtor Days 8 8 8 8
Non Cur Investments 8,667 15,000 14,000 10,000 Inv Days 40 40 40 40
Other Non Cur Asst 146 146 146 146 Payable Days 23 23 23 23
Non Curr Assets 1,47,550 1,63,271 1,75,262 1,88,817 Int Coverage 5 8 8 8
Inventory 42,095 50,372 52,654 55,160 P/E 9 11 11 11
Debtors 8,660 10,396 10,874 11,400 Price / Book Value 1.3 2.4 2.1 1.9
Cash & Bank 2,014 2,514 3,654 3,600 EV/EBITDA 5 7 7 6
Other Curr Assets 2,902 3,844 4,104 4,389 FCF per Share 47 25 25 16
Curr Assets 94,474 1,14,532 1,19,708 1,23,250 Div Yield 2% 3% 3% 3%
Creditors 24,921 29,767 31,103 32,570
Provisons 32,109 38,462 40,214 42,137 Key Assumptions
Other Curr Liab 29,060 35,303 37,024 38,914 FY16 FY17E FY18E FY19E
Curr Liabilities 83,614 1,01,056 1,05,865 1,11,145 Refinery Throughput (MT) 56 65 70 70
Net Curr Assets 10,860 13,476 13,843 12,105 Pipeline Throughput (MMT) 80 85 91 99
Total Assets 2,42,024 2,77,802 2,94,971 3,12,067 Marketing Volume(MT) 80 80 84 88

Please refer to the Disclaimers at the end of this Report

Narnolia Securities Ltd
 IRB InvIT Fund "SUBCRIBE"
2nd May 2017
IPO Note
Issue Detail Company Overview
Type 100% Book Building IRB InvIT Fund is a registered infrastructure investment trust under the InvIT Regulations. They
Issue Size Rs. 4700 Crore primarily intend to own, operate and maintain a portfolio of six toll - road assets in the Indian states of
Maharashtra, Gujarat, Rajasthan, Karnataka and Tamil Nadu. These toll roads are operated and
Offer Price *Rs (100-102)/Equity Share maintained pursuant to concessions granted by the NHAI.
Min App Size 10000 Shares IRB Infrastructure Developers Limited (the Sponsor) is, one of the largest infrastructure
development and construction companies in India in terms of net worth in the roads and
Issue Open 3-May-17
highways sector according to the NHAI's annual prequalification for public private partnerships in
Issue Close 5-May-17 national highway projects report for 2016. Excluding the toll-road assets that will be transferred by IRB
Shares Offer 45.6 Cr. to them, as of December 31, 2016, IRB has 16 road projects, of which eight are operational, five are
under construction and three are under development. They wish to acquire an initial portfolio
Face Value Rs 10
comprising of the Project SPVs, all of which are currently either wholly or majority owned by IRB and
Credit Suisse Securities (India) its subsidiaries.
Private Ltd , ICICI Securities
Lead Mgrs Ltd, IDFC Bank Ltd , IIFL
The Trust has been settled by the Sponsor pursuant to the Indenture of Trust in Mumbai, India, as an
Holdings Ltd.
irrevocable trust in accordance with the Trusts Act. The Trust was settled with an initial settlement
Listing BSE, NSE amount of Rs. 10,000 by the Sponsor.

Registrar Karvy Computershare Pvt Ltd These toll roads projects are BharuchSurat NH 8, JaipurDeoli NH 12, SuratDahisar NH 8,
TumkurChitradurga NH 4, OmalurSalemNamakkal NH 7 and TalegaonAmravati NH 6. While
Surat-Dahisar and Bharuch-Surat project has concession period tenure till January 2022 and Omalur-
Salem-Namakkal till August 2026, other projects have concession tenures ending in June 2037.
Sponsor has 22 BOT road projects on hand as on 31st December 2016 out of which 14 are
operational, 5 are under construction and 3 are under development. Futures of all these projects are
No of shares based on the daily traffic volumes, inflation and regulatory changes. Trust will follow factoring of WPI
in the pricing of the projects.
Offer for Sale 347,61,770

Fresh Issue made 421568627 Company Strength

option to retain oversubscription upto 25% of
issue size.
> Company has diversified road project portfolio and revenue base. The geographic diversity of the
Initial Road Assets will play a significant role in developing experience and expertise, including ability
to evaluate, acquire, operate and maintain new projects. The geographically and temporally diverse
project portfolio provides with an advantage in capitalizing on new opportunities available in the roads
and highways sector .

> Company has Experienced Sponsor, Investment Manager and Project Manager with consistent
track records in operating and maintaining projects in the roads and highways sector in India . The
Sponsor is one of the largest infrastructure development and construction companies in India in terms
of net worth in the roads and highways sector with a large project portfolio of 8,183 Lane Kilometres
of roads and highways in operation, under construction or under development, excluding the Initial
Road Assets, as of December 31, 2016.

> The Net Proceeds will be used to repay and replace a significant portion of the Project SPVs'
existing indebtedness. The resulting low leverage will provide them with debt capacity to grow their
business, including by financing future acquisitions. They intend on financing future development and
acquisitions through the issuance of additional Units .

Recommendation
IRB InvIT FUND is India's first registered infrastructure investment trust. IRB has bundled six of its operational toll road assets and transferred them
to the Trust.
The Trust generates income in the form of toll collection from these road assets and interest on cash in their books. According to SEBI guidelines,
the Trust needs to distribute at least 90 percent of this distributable cash to the unit holders in the form of dividend, which will be tax free. The
Trust also is exempted from dividend distribution tax.
Based on projected cash flow on the basis of estimated growth in traffic and inflation-linked increase in toll charges, at an upper price band of IPO
(Rs 102), the dividend yield will be close to 10%. Excessive investor interest may also lead to some price appreciation post-listing.
Risk attached to the issue is that the regulatory framework governing infrastructure investment trusts in India is untested and the interpretation
and enforcement thereof involve uncertainties.

Please refer to the Disclaimers at the end of this Report.

 IRB InvIT Fund

Objects of Issue:
The object and purpose of the Trust, as described in the Indenture of Trust, is to carry on the activity of an infrastructure investment trust under
the InvIT Regulations, to raise resources in accordance with the InvIT Regulations, and to make investments in accordance with the investment
strategy of the Trust. The Trustee and the Investment Manager shall ensure that the subscription amounts are kept in a separate bank account in
the name of the Trust and are only utilised for adjustment against Allotment of Units or refund of money to the applicants until such Units are
listed.

Utilization of Net Proceeds

Particulars Estimated Amount

Investment in the Project SPVs by way of an issue of debt
1 4200 Cr.
2 General purposes []

Particulars Amount Amount

Outstanding as on Proposed to be
December 31,2016 ( Repaid/Prepaid (
Cr. ) Cr. )
Repayment/prepayment, in part, of certain loans/facilities availed by
the Project SPVs from their respective senior lenders
1
Loans/facilities availed from senior lenders that are not associates of
a GCBRLMs and BRLM 2121.4 1060

Loans/facilities availed from senior lenders that are associates of

1,391.28 1,368.16
b GCBRLMs and BRLM
Prepayment, in full, of the subordinate debt provided to certain
Project SPVs by the Sponsor and the Project Manager 698.50 698.50
2
Prepayment, in full, of certain unsecured loans and advances
availed by certain Project SPVs from the Sponsor, the Project 741.74 741.74
Manager and certain members of the Sponsor group
3
Repayment/prepayment, in part, of the balance portion of certain
loans/facilities availed by the Project SPVs from their respective 10,14.9
senior lenders
4
Total 4952.921 3868.4028

Trust will have key investment conditions as under:

1 Invest at least 80% of the value of the assets in completed and revenue generating infrastructure assets
2 Balance 20% can be invested in under-construction infrastructure projects and securities of infrastructure
companies in India (cannot invest in units of other InvITs)

3 InvIT should hold (directly or through SPVs) the infrastructure assets for at least 3 years from the date of
purchase of the asset by the InvIT (except investment in securities of infrastructure companies)

4 Investment into SPVs is subject to the InvIT holding a controlling interest (at least 51% of equity share capital) in
the SPVs

On dividend policy, investors are likely to get rewards based on

> At least 90% of distributable cash flow of the SPV shall be distributed to the InvIT in proportion to its
holding in the SPV
> At least 90% of distributable cash flow of the InvIT shall be distributed to the unit holders
> Dividend declared to be paid within 15 days; distributions to the unit holders to be made on a half yearly basis
(however, management has intention to distribute dividends on quarterly basis as informed during road show. Such
dividends will be totally tax free in the hands of the Unit holders.)

Please refer to the Disclaimers at the end of this Report.

 IRB InvIT Fund

Financials Snap Shot

Profit & Loss Account ( Cr.) 31 Mar 14 31 Mar 15 31 Mar Ratio 31 Mar 14 31 Mar 15 31 Mar
16 16
Revenue (Net) 745.2 900.3 986.7 Profitability Ratios
Other Income 17.3 16.1 17.1 RoE 12% 12% 17%
Total Revenue 762.5 916.4 1,003.8 RoCE 12% 12% 17%
Road work and site expenses 48.0 142.6 128.4 Liquidity Ratios
Employee benefits expense 16.0 17.4 20.9 Net Debt/Equity 1.981 2.031 1.999
Other expenses 11.7 12.2 11.2 Interest Coverage Ratio 101.5 -95.1 18.7
Total Expenses 75.7 172.3 160.5
EBITDA 686.8 744.1 843.3 Issue Information
Depreciation and amortisation expenses 68.7 74.4 84.3 Type 100% Book Building
EBIT 618.2 669.7 759.0 Issue Size Rs. 4700 Crore
Finance Costs 375.6 444.8 434.8 Offer Price *Rs (100-102)/Equity Share
Profit / (loss) before tax 242.6 224.8 324.2 Min App Size 10000 Shares
Tax expenses 2.4 -2.4 17.3 Issue Open 42858.0
PROFIT AFTER TAX 240.2 227.2 306.9 Issue Close 42860.0
Other comprehensive income 0.1 0.0 -0.1 Shares Offer 45.6 Cr
Profit before Tax 240.3 227.2 306.8 Face Value Rs 10

Balance Sheet ( Cr.) 31 Mar 14 31 Mar 15 31 Mar Cash Flow ( Cr. ) 31 Mar 14 31 Mar 15 31 Mar
16 16
Share Capital 1111.6 1114.6 1114.6 Profit/(Loss) before tax (45.2) (126.1) (59.1)
Subordinated debt (in nature of equity) 695.6 698.5 698.5 Adjustments
Other equity 215.6 91.6 15.2 Interest expense 347.4 413.9 398.7
Net Worth 2022.7 1904.7 1828.2 Depreciation and amortisation expenses 356.4 425.4 467.6
Borrowings 4006.9 3868.2 3655.2 Dividend income on current investments (0.0) (0.0) (0.4)
Other financial liabilities 6959.2 6867.3 6662.6 Interest income (12.2) (10.1) (9.6)
Provisions 121.5 73.5 109.4 Operating profit before working capital changes646.4 703.0 797.3
Non - current liabilities 11087.6 10809.0 10427.2 Movement in working capital
Borrowings 677.8 677.8 643.6 Increase/(decrease) in trade payables (44.3) 35.4 (29.5)
Trade payables 7.6 43.0 13.4 Increase/(decrease) in other liabilities 9.8 0.6 (10.9)
Other financial liabilities 383.8 421.0 545.4 Increase/(decrease) in other financial liabilities (139.3) (163.9) (152.1)
Other current liabilities 12.9 13.9 3.0 Increase/(decrease) in provisions 0.2 43.8 35.8
Provisions 0.2 0.1 0.1 Decrease/(increase) in trade receivables (0.7) 0.8 0.7
Current tax liabilities 3.8 3.3 1.4 Decrease/(increase) in financials assets-loans (4.0) (129.9) (70.2)
Current liabilities 1086.1 1159.0 1206.9 Decrease/(increase) in others financial assets 18.0 3.0 1.9
Total Liability 14196.5 13872.7 13462.3 Decrease/(increase) in others assets 139.5 8.3 (4.2)
Fixed Asset 13047.0 13466.3 13940.6 Cash generated from / (used in) operations 625.6 501.1 568.7
Deferred tax assets 44.8 49.2 36.7 Direct taxes paid (net of refunds) 0.8 1.3 7.6
Other non-current assets 3.0 1.1 0.5 Net cash flows from operating activities 624.9 499.8 561.1
Total Non-current assets 13094.8 13516.6 13977.9 Net cash flows from investing activities (454.0) (26.6) (37.2)
Trade receivables 20.4 17.8 14.8 Net cash flows from financing activities (271.8) (463.3) (548.3)
Cash and cash equivalents 173.8 180.8 160.6 Net increase/(decrease) in cash (100.9) 9.9 (24.5)
Loans 0.1 125.3 190.4 Cash at the beginning of the year 173.5 72.5 82.4
Current tax assets 3.5 2.2 3.2 Cash at the end of the year 725.4 824.0 579.4
Other current assets 10.7 4.3 9.0
Total asset 13303.2 13846.9 14355.9

Please refer to the Disclaimers at the end of this Report.

 INDUSTRY - Con. Staples
BSE Code - 500096
NSE Code - DABUR
02-May-17 NIFTY - 9314

Company Data Key Highlights of the Report:

CMP 285 DABUR reported result below than our expectation. Sales declined by 5%
Target Price NEUTRAL
YoY to Rs 1915 cr whereas our expectation was Rs 2070 cr.
Previous Target Price DABURs gross margin declined by 163 bps to 49% but maintained
Upside operating margin led by lower employee, A&P and Other Expenses.
52wk Range H/L 320/259 International business declined by 4.5% in constant currency terms led by
Mkt Capital (Rs Cr) 50,045 currency devaluation in Egypt, Turkey and Nigeria and Macro economic
Av. Volume (,000) 1,461 slowdown in MENA region.

RoE
The company reported 2.4% overall volume growth for this quarter.
Considering subdued International business growth which contributes
ROE
approx. 25% of companys total revenue and expectation of contraction in
45%
margin going forward on the back of higher A&P expenses we are Neutral
40%
38% 36%
34% on this stock.
35% 32%
30%
30% 26%

25%
20%
15%
Financials/Valu FY15 FY16 FY17 FY18E FY19E
10%
5%
ation
Net Sales 7,827 7,869 7,701 8,615 9,808
0% EBITDA 1,316 1,518 1,509 1,612 1,845
FY12 FY13 FY14 FY15 FY16 FY17
EBIT 1,201 1,385 1,366 1,833 2,117
Shareholding patterns % PAT 1,066 1,251 1,277 1,411 1,639
4QFY17 3QFY17 2QFY17 EPS (Rs) 6 7 7 8 9
Promoters 68 68 68 EPS growth (%) 16% 17% 2% 11% 16%
Public 32 32 32 ROE (%) 32% 30% 26% 26% 26%
Total 100 100 100 ROCE (%) 34% 31% 26% 23% 24%
BV 19 24 28 32 38
Stock Performance % P/B (X) 10.2 11.6 10.3 8.8 7.5
1Mn 3Mn 1Yr P/E (x) 32.0 38.8 39.3 35.5 30.6
Absolute 2.5 2.9 5.5
Rel.to Nifty 1.0 (4.0) (13.2) RESULT REVIEW:

125 DABUR NIFTY DABURs result for Q4FY17 is below than our expectations. Sales
120 declined by 5% YoY to Rs 1915 cr from Rs 2010 cr.
115
Gross margin declined by 163 bps YoY to 49% due to increase in material
110
105 costs and adverse currency impact.
100 EBITDA margin improved by 115 bps YoY to 21.8% from 20.7% led by

95 lower employee, A&P and Other expenses.
90
85 PAT margin improved by 91 bps YoY 17.4% from 16.5%.
80
DABURs PAT for this quarter remained flat. Reported PAT of Rs 333 cr

(Vs Rs 331 cr in Q4FY16).

RAJEEV ANAND
rajeev.anand@narnolia.com
Please refer to the Disclaimers at the end of this Report
Narnolia Securities Ltd
 Quarterly Performance
Financials 4QFY16 1QFY17 2QFY17 3QFY17 4QFY17 YoY % QoQ% FY16 FY17 YoY %
Net Sales 2,010 1,928 1,981 1,853 1,915 -5% 3% 7,869 7,701 -2%
Other Income 54 61 89 83 65 21% -22% 217 298 37%
COGS 992 938 967 938 976 -2% 4% 3,850 3,843 0%
Ad & P Expenses 157 197 149 177 123 -21% -31%
Employee Cost 202 212 216 189 173 -14% -9% 794 790 -1%
Other Expenses 245 234 240 214 225 -8% 5% 1,707 1,560 -9%
EBITDA 415 349 408 334 418 1% 25% 1,518 1,509 -1%
Depreciation 36 34 36 33 40 11% 19% 133 143 7%
Interest 13 12 17 14 12 -12% -16% 48 54 11%
PBT 420 364 445 370 431 3% 17% 1,554 1,610 4%
Tax 87 70 87 75 98 13% 30% 300 330 10%
PAT 331 293 357 294 333 0% 13% 1,251 1,277 2%

International
business Expect subdued growth due to pressure on International Business going forward.
declined by
4.5% in cc term. International business declined by 4.5% in constant currency terms led by currency devaluation in
Egypt, Turkey and Nigeria and Macro economic slowdown in MENA region.
Severe currency devaluation of ~55% in Egyptian Pound, ~20% in LIRA and ~36% in Naira led to
translation loss in the international business
Local currency growth for Egypt remained 19% while Nepal and Turkey recorded local currency
growth of 16% in Q4FY17.
Bangladesh recorded local currency growth of 2% in Q4FY17.
The company is facing headwinds in Saudi & UAE market. We expect it to remain for at least one
year. Although company has indicated that market shares in most categories & countries remained
stable to increasing but we remain bearish on overall International business considering slower
MENA region growth going forward.

Contribution from International business in total revenue declined from 34% to 25%.

Sales Contribution(Q1FY17) Sales Contribution(Q4FY17)

Others, 3% Others, 4%

International,
International, 25%
34%
Domestic
FMCG, 63% Domestic
FMCG, 71%

Please refer to the Disclaimers at the end of this Report

Narnolia Securities Ltd
 Margin % 4QFY16 1QFY17 2QFY17 3QFY17 4QFY17 YoY(+/-) QoQ(+/-) FY16 FY17 YoY(+/-)
Gross Margin 50.6% 51.4% 51.2% 49.4% 49.0% -1.6% -0.3% 51.1% 50.1% -1.0%
EBITDA Margin 20.7% 18.1% 20.6% 18.0% 21.8% 1.2% 3.8% 19.3% 19.6% 0.3%
PAT Margin 16.5% 15.2% 18.0% 15.9% 17.4% 0.9% 1.5% 15.9% 16.6% 0.7%

Gross margin declined by 168 bps YoY and 34 bps QoQ led by increase in material costs and adverse
currency impact.
EBITDA margin improved by 115 bps YoY and 379 bps QoQ on the back of lower employee expense
(down by 100bps) ,AD&P expense (down by 136 bps) and Other expense(down by 42 bps).
PAT margin improved by 91 bps YoY and 154 bps QoQ in Q4FY17.

Sales and PAT (in cr.) Domestic FMCG Revenue Break Up

2100 400 Domestic FMCG Revenue Break up(Q4FY17)
Net Sales(in cr) PAT(in cr)
2050 357 350
340 331 333
318
2000 293 294 300
287 283 285
262
1950 250 Health
Foods, 19% Supplements, 1
1900 211 200 Skin & 7% Digestives, 6%
Salon, 5%
1850 150
OTC&
1800 100 Home Care, 6% Ethicals, 9%
Oral Care, 16%
1869

1930

1950

1959

1972

1928

1981

1853

1915
2079

1907

2010

1750 50 Hair Care, 22%

1700 0

Concall Highlights(Q4FY17):
Translation loss Rural market is showing signs of revival.
remained Rs 79 New Launches: Red Gel Toothpaste Launched, Dabur Woman Restorative Tonic.
cr in Q4FY17. Media Spend: Expects sharp increase especially 2nd half of FY18.
International business: Translation loss remained Rs 79 Cr in Q4FY17.
If tax differential will be less in GST than chances of de-stocking will be less.
Secondary sales is much higher than primary sales in this quarter.
The company will curtail its promotions sharply going forward in FY18.
Tax rate: Under MAT for some more time.
Tezpur plant: Tezpur plant commissioned in March17.Excise duty benefit and 80i benefits will
remain for next 10 years.
Market share in toothpaste segment increased by 100 bps yoy.
Dabur gained volume market share by 70bps in Air fresheners and 100 bps in Mosquito
Repellant Creams YOY.
International business: Pressure in MENA region will remain for whole year.
Pricing action: The Company will take price hike only to maintain margin.
OTC remained subdued.
The company has inventory of 6-8 months of low priced raw honey. Company will not increase
prices in Q1FY18.

Please refer to the Disclaimers at the end of this Report

Narnolia Securities Ltd
 Investment Arguments:
Innovation and new product launches:The company has long history of products innovation and
new products launches. It had launched Amla Naturals in last quarter which has very encouraging
response. Recently DABUR has launched: Red Gel Toothpaste and Woman Restorative Tonic.
Strong Ayurvedic portfolio: The Company has strong Ayurvedic product portfolio and we expect
DABUR will be ultimate beneficiary in the long run of Patanjali initiatives of expending awareness
about ayurvedic products and its uses.
Strong financials: DABUR is one of the best companies in our FMCG basket. The companys sales
grew at the CAGR of 15% and PAT of 17% for last five years. It maintained average ROE of 34% for
last five years.
Expect media spending to increase sharply Expect contraction in margin going forward

Employee Expense Other expense Ad Expense

Gross Margin EBITDA margin
18%
60% 53% 52% 54% 52% 51% 51% 51%
16% 51% 50% 51% 49% 49%
14% 50%
12% 40%
10%
30% 22%
8% 18% 17% 18% 17%
21% 19% 21%
18%
21%
18%
6% 20% 14%

4% 10%
2%
0%
0%

Domestic FMCG Volume growth Local Currency Growth Rate

Domestic FMCG Volume Gr %

10.00% 8.70% Local Currency Growth Rate(Q4FY17)

8.10% 8.10%
7.40% 20% 19%
8.00% 7.00%
5.50% 18% 16% 16%
6.00% 4.50% 16%
4.10%
14%
4.00% 2.40% 12%
2.00% 10%
8%
0.00% 6%
-2.50% 4% 2%
-2.00%
2%
-4.00% -5.20% 0%
Egypt Nepal Turkey Bangladesh
-6.00%

View & Valuation

The company is facing headwinds in the international market which contributes approx. 25% of the
total revenue. We expect it to continue for at least next four quarters. Secondly companys
management has indicated that going forward they will increase their media spending sharply which
may impact its margin going forward as in this competitive environment it will be slightly tough to
increase prices. Considering subdued International business growth and expectation of
contraction in margin going forward on the back of higher Ad expenses we are Neutral on this
stock.

Please refer to the Disclaimers at the end of this Report

Narnolia Securities Ltd
 INDUSTRY - BIOTECHNOLOGY
BSE Code - 532523
NSE Code - BIOCON
02-May-17 NIFTY - 9304

Comapany Data Key Highlights of the Report:

CMP 1112 Marketing Authorization application for Bio-similar Trastuzumab,
Target Price 970
pegfilgrastim and insulin Glargine were accepted by European Medical
Previous Target Price 15% agency for review.
Upside Discontinuance of Ambraxane drug, and fire broke down at one of its
52wk Range H/L 1188/564 facility in Dec. 2016 has impacted the revenue of the company in the last
quarter.
Mkt Capital (Rs Cr) 22,107 Biocon plans to file Marketing Authorization application for Bio-similar
Av. Volume (,000) 128 Trastuzumab with USFDA in FY18.

RoE declines to 12.7% in FY17

Biocon has made 5 regulatory filings with USFDA in FY17.
Malasiyan faciltity has been Commercialised and revenue will start
20.0% coming from 1QFY18.
18.9%
18.0%

16.0%
15.2%
14.0%
13.7% 13.6%
12.7%
12.0%
11.3%
Financials/Valu FY15 FY16 FY17 FY18E FY19E
10.0% 9.7% ation
Net Sales 3,090 3,347 3,891 5,026 5,964
8.0% EBITDA 564 636 851 1,148 1,363
FY13 FY14 FY15 FY16 FY17 FY18E FY19E
EBIT 343 387 574 604 793
Share Holding patterns % PAT 497 550 612 512 653
4QFY17 3QFY17 2QFY17 EPS (Rs) 25 28 31 26 33
Promoters 60.7 60.7 60.7 EPS growth (%) 20% 11% 11% -16% 27%
Public 37.2 37.2 37.2 ROE (%) 15% 14% 13% 10% 11%
Others 1.8 1.8 1.8 ROCE (%) 8% 6% 8% 8% 9%
Total 100.0 100.0 100.0 BV 3,271 4,034 4,838 5,253 5,782
Stock Performance % P/B (X) 2.9 2.4 4.6 4.2 3.8
1Mn 3Mn 1Yr P/E (x) 20.0 20.0 20.0 20.0 20.0
Absolute (3.7) 8.5 93.5
Rel.to Nifty (5.4) 0.7 76.9 RECENT DEVELOPMENT:
Mylan got a nod for breast cancer tablets -Exemestane tablets. U.S. sales
200
BIOCON NIFTY of approximately $100 million for the 12 months ending Jan. 31, 2017,
180 according to IMS Health
160 US FDA accepts Biocon-Mylan biosimilar application for proposed anti-
cancer bio-similar. The market size of Trastuzumab injection is valued at
140
about $6.5 billion, according to IMS data
120
Biocon has partnered with Japanese drug firm Eisai Pharma to market the
100
latter's anti-ulcer drug rabeprazole in India.Market size for rabeprazole and
rabeprazole-D is roughly Rs 950 crore in India
80
Mylan has inked a settlement pack with Genentech and Roche in relation
Jul-16

Sep-16

Feb-17
Jan-17
Dec-16
Jun-16

Aug-16
May-16

Oct-16

Nov-16
Apr-16

Apr-17
Mar-17

to patents for cancer drug Herceptin (Trastuzumab).The settlement gives

Mylan global licence to commercialise its Trastuzumab product in various
ADITYA GUPTA markets around the world.
adityagupta@narnolia.com
Please refer to the Disclaimers at the end of this Report
Narnolia Securities Ltd
 Quarterly Performance
Financials 4QFY16 1QFY17 2QFY17 3QFY17 4QFY17 YoY % QoQ% FY16 FY17 YoY %
Biopharma(CORE 531 464 501 582 699 32% 20% 1,879 2,246 20%
BIOPHARMA)
India(BRANDED 101 138 137 123 105.5 4% -14% 436 503.5 15%
FORMULATIONS)
CRAMS 316 263 286 317 363 15% 15% 1,061 1,229 16%
Licensing income 23 17 24 79 23 0% -71% 76 143 88%
Net Sales 957 982 946 1,038 931 -3% -10% 3,347 3,891 16%
Other Income 16 41 38 47 43 170% -9% 79 157 98%
COGS 334 357 301 330 336 0% 2% 1,290 1,447 12%
Employee Cost 167 179 180 194 194 16% 0% 610 747 22%
Other Expenses 251 184 224 237 214 -15% -10% 811 846 4%
EBITDA 205 263 240 276 188 -8% -32% 636 851 34%
Depreciation 65 66 68 70 73 12% 3% 249 277 11%
Interest 21 6 7 9 5 -76% -43% 29 26 -11%
PBT 135 232 204 244 153 13% -37% 569 833 46%
Tax 55 55 42 54 10 -81% -81% 142 162 14%
PAT 333 167 147 171 128 -62% -26% 550 612 11%

Margins under pressure

Margin % 4QFY16 1QFY17 2QFY17 3QFY17 4QFY17 YoY(+/-) QoQ(+/-) FY15 FY16 YoY(+/-)
Gross Margin 65% 64% 68% 68% 64% -0.01 -0.04 30% 33% 0.03
EBITDA Margin 21% 27% 25% 27% 20% -0.01 -0.06 13% 16% 0.02
PAT Margin 35% 17% 16% 17% 14% -0.21 -0.03 7% 8% 0.01

Gross Margin contracted by 100bps YoY and 400bps QoQ due to higher purchase of stock in trade
and cost of material consumed.
EBITDA degrew by 8%YoY to Rs.188 crore. EBITDA Margin also declined by 130bps YoY to 20.1%
on account of higher employee cost.
PAT degrew by 61%YoY to Rs.128 crore. In 4QFY16, there was an exceptional item of Rs. 268 Cr.
which has inflated profit in 4QFY16.

EBITDA( Rs.Crore) EBITDA Margin PAT( Rs.Crore) PAT Margin

400 40%
300 27% 27% 30% 35%
25% 25%
350 35%
250 22% 23% 25%
21% 21% 21%
20% 300 30%
24%
200 20% 250 25%

150 15% 200 17% 16% 17% 20%

15%
276
263

14%
333

13%
240

150 12% 15%

212

205

188
185

185

100 10%
169
160

202

100 10%
171
167

147

128
126

50 5%
104

50 5%
91

-1%
0 0% 0 0%
-11

-50 -5%

Please refer to the Disclaimers at the end of this Report

Narnolia Securities Ltd
 Concall Highlights:
Biocon Malaysian Insulin plant has started commercial sales, but management refrains from giving
any revenue guidance
Marketing Authorization application for Bio-similar Trastuzumab, pegfilgrastim and insulin Glargine
were accepted by European Medical agency for review.
Biocon has received approval for Rosuvastatin Calcium from USFDA. This is the first ANDA approval
for Biocon. This will further strengthen the companys API business.
Discontinuance of Ambraxane drug, and fire broke down at one of its facility in Dec. 2016 has
impacted the revenue of the company in the last quarter.
Capex guidance for FY18 is Rs. 700 Cr. This does not include capex planned by Syngene.
Biocon Insulin Disposable pens were highly appreciated in the International markets.
R&D exp. for 4QFY17 is Rs. 98 Cr. Out of which Rs. 64 Cr is reflected in P&L A/C. Guidance for FY18
is 12-15% of its revenue.
Biocon has completed ROW phase-3 clinical trial of its Bio-similar Bevacizumab for metastatic
colorectal cancer.
Plans to file Marketing Authorization Application with USFDA for insulin Glargine very soon.
Biocon has made 5 regulatory filings with USFDA in FY17.
Syngene has continued to expand its manufacturing facility by setting up new API facility in Mangalore
and new Biologics facility in Bangalore.

Investment Arguments:
Delay in Copaxone approval: Biocon has received queries from the USFDA relating to its ANDA for
generic Copaxone 20 mg and 40mg. The company is yet to respond to these queries
Discontinuance of Ambraxane: Biocon has discontinued Ambraxane drug from its portfolio which is a
major set back for the company.
Waiting for EMA Nod:Marketing Authorization application for Bio-similar Trastuzumab, pegfilgrastim
and insulin Glargine were accepted by European Medical agency for review. Company is still waiting
for approval which usually takes 12-18 months.
Commercialization of Malaysian facility : The facility manufactures the Drug Substance for Biocons
range of rh-insulin and insulin analogs as well as Drug Products in vials, cartridges and devices. This
facility supplies drug to the US market.This facility has been set up at an investment of over USD 250
million

View & Valuation

Biocon has discontinued drug Ambraxane from Indian and European markets which impacted
4QFY17s sales. On-going pricing pressure in US market and rupee appreciation are key concerns for
the company going forward. In last Dec. 2016, fire broke out at one of its facilities has adversely
impacted the EBITDA margin of the company by 130bps. Commercial sales of Insulin to US from
Malaysian facility has started but we do not have any clarity on the revenue front in this quarter. We do
not expect any sharp improvement in revenue in near term. Currently, the stock is trading at 4.74x
FY17 P/BV. Considering the growth un-certainities in near term, we maintain Neutral rating in this
stock.

Please refer to the Disclaimers at the end of this Report

Narnolia Securities Ltd
 Financials Snap Shot
Income Statement Rs in Crores Curr Assets 3,971 4,048 4,880 5,832
Y/E March FY16 FY17E FY18E FY19E Creditors 610 740 916 1,086
Revenue from Operation 3,347 3,891 5,026 5,964 Provisons 67 83 92 103
Change (%) 8% 16% 29% 19% Other Curr Liab 316 366 475 564
EBITDA 636 851 1,148 1,363 Curr Liabilities 1,271 1,581 1,876 2,146
Change (%) 13% 34% 35% 19% Net Curr Assets 2,700 2,467 3,004 3,687
Margin (%) 19% 22% 23% 23% Total Assets 8,458 9,394 10,478 11,578
Depr & Amor. 249 277 544 570
EBIT 387 574 604 793 Cash Flow Statement in Rs Crores
Int. & other fin. Cost 29 26 30 33 Y/E March FY16 FY17E FY18E FY19E
Other Income 79 157 104 105 PBT 1,227 833 678 864
EBT 569 833 678 864 (inc)/Dec in Working Capital (45) (186) (13) (100)
Exp Item 161 - - - Non Cash Op Exp 242 277 544 570
Tax 142 162 166 211 Int Paid (+) 10 26 30 33
Minority Int & P/L share of Ass. (59) (76) - - Tax Paid (247) (162) (166) (211)
Reported PAT 550 612 512 653 others (652) 26 30 33
Adjusted PAT 430 612 512 653 CF from Op. Activities 526 881 1,074 1,156
Change (%) 11% 11% -16% 27% (inc)/Dec in FA & CWIP (811) (754) (796) (718)
Margin(%) 16% 16% 10% 11% Free Cashflow (284) 127 277 438
(Pur)/Sale of Inv (197) - - -
Balance Sheet Rs in Crores others 495 - - -
Y/E March FY16 FY17E FY18E FY19E CF from Inv. Activities (954) (754) (796) (718)
Share Capital 100 100 100 100 inc/(dec) in NW - - - -
Reserves 3,934 4,738 5,153 5,682 inc/(dec) in Debt 1,346 (262) 322 250
Networth 4,034 4,838 5,253 5,782 Int. Paid 10 26 30 33
Debt 2467.3 2,205.4 2,527.0 2,777.0 Div Paid (inc tax) 20 - - -
Other Non Cur Liab 371 352 352 352 others (262) (142) (127) (157)
Total Capital Employed 6,501 7,043 7,780 8,559 CF from Fin. Activities 1,087 (404) 194 93
Net Fixed Assets (incl CWIP) 3,961 4,438 4,690 4,837 Inc(Dec) in Cash 659 (276) 472 531
Non Cur Investments - 146 146 146 Add: Opening Balance 463 761 710 810
Other Non Cur Asst 229 278 278 278 Closing Balance 1,127 485 1,182 1,341
Goodwill 26 26 26 26
Investment in associates & joint ventures26 42 42 42 Key Ratios
Derivative assets 61 109 109 109 FY16 FY17 FY18E FY19E
Other financial assets 26 20 20 20 ROE 14% 13% 10% 11%
Income tax assets 85 90 90 90 ROCE 6% 8% 8% 9%
Non Curr Assets 4,487 5,347 5,598 5,746 Asset Turnover 0.4 0.4 0.5 0.5
Current investments 875 1,065 1,065 1,065 Debtor Days 78 78 78 78
Inventories 542 635 814 966 Inv Days 59 59 59 59
Trade receivables 715 883 1,073 1,273 Payable Days 66 66 66 66
Cash and bank balances 761 710 810 815 Int Coverage 13.21 22.08 19.91 23.79
Other bank balance 777 334 759 1,336 P/E 18 36 43 34
Derivative assets 51 106 106 106 Price / Book Value 2.4 4.6 4.2 3.8
Other financial assets 184 155 155 155 EV/EBITDA 17 28 21 18
Other current assets 65 159 98 116 FCF per Share (14) 6 14 22
Div Yield 1.0% 0.5% 0.4% 0.5%

Please refer to the Disclaimers at the end of this Report

Narnolia Securities Ltd
 INDUSTRY - AUTOMOBILE
BSE Code - 532500
NSE Code - MARUTI
28-Apr-17 NIFTY - 9342

Comapany Data Key Highlights of the Report:

CMP 6371 Higher fixed cost and depreciation on Gujarat plant will lead to further
Target Price 6450
deterioration in the margins because of gradual ramp up in the volumes.
Previous Target Price EBITDA margin contracted by 300bps in last 3 quarters.
Upside 1% Continued support from higher other income has helped company to post
52wk Range H/L 6444/3730 over 9% PAT margin.
Mkt Capital (Rs Cr) 1,92,460 We expect 120 bps deterioration in RoE in FY19E from 20.2% in FY17.
Av. Volume (,000) 39 Going ahead lower PAT growth compared to previous period gives us
very little cushion on the valuation front and at the present price level
RoE to decline by 120bps
valuation is little stretched. Hence, we change our rating from BUY to
25% Neutral with the target price of Rs. 6450 .
20%
19% 19%
20% 18%
16%
15% 13% 13%

10%

5%
Financials/Valu FY15 FY16 FY17 FY18E FY19E
ation
Net Sales 50,801 57,589 68,085 71,496 79,796
0%
EBITDA 6,844 8,768 10,358 10,848 12,231
EBIT 4,329 5,947 7,754 7,878 9,621
Share Holding patterns % PAT 3,807 5,377 7,511 7,449 9,188
4QFY17 3QFY17 2QFY17 EPS (Rs) 126 178 249 247 304
Promoters 56.2 56.2 56.2 EPS growth (%) 33% 41% 40% -1% 23%
Public 43.8 43.8 43.8 ROE (%) 16% 19% 20% 18% 19%
Total 100.0 100.0 100.0 ROCE (%) 18% 21% 21% 19% 20%
BV 805 919 1,227 1,384 1,598
Stock Performance % P/B (X) 4.6 4.0 5.2 4.6 4.0
1Mn 3Mn 1Yr P/E (x) 29.3 20.9 25.6 25.8 20.9
Absolute 6.6 7.6 64.7
Rel.to Nifty 4.0 (0.5) 47.3 RECENT DEVELOPMENT: Commencement of Gujarat Plant
170
MARUTI NIFTY Gujarat plant has started production of first phase from February 2017
160 with total capacity of 250000 units per annum and initially, it will produce
150 20,000 units per month.
140 Suzuki Motor Corporation had plans to spent around Rs.8500 crore on the

130 Gujarat plant. The plant will become operational in three phases.
120 Suzuki Motor Corporation will sell the production on cost to Maruti once its

110 gets completed.
100 Baleno will be first model to be produced and later on depending on the
90 demand scenario other models can also be produced from same
80 plateform.
The plant will take care of new models and exports. It will also reduce the

Jul-16

Sep-16

Feb-17
Jan-17
Dec-16
Jun-16

Aug-16
May-16

Oct-16

Nov-16
Apr-16

Apr-17
Mar-17

logistics cost of Maruti.

NAVEEN KUMAR DUBEY

Naveen.dubey@narnolia.com
Please refer to the Disclaimers at the end of this Report
Narnolia Securities Ltd
 Quarterly Performance
Financials 4QFY16 1QFY17 2QFY17 3QFY17 4QFY17 YoY % QoQ% FY16 FY17 YoY %
Total Volumes ('000) 360 348 418 387 414 15% 7% 1,429 1,568 10%
Higher other
Realization(Rs./ car) 424372.8 428400.1 426381.8 435500.5 442420 4% 2% 402932.2 434062.5 8%
income
supporting PAT Net Sales 15,294 14,927 17,843 16,865 18,333 20% 9% 57,589 68,085 18%
Other Income 537 483 813 592 445 -17% -25% 1,481 2,290 55%
COGS 10,095 10,125 12,074 11,674 12,767 26% 9% 38,706 46,742 21%
Employee Cost 603 579 519 617 616 2% 0% 2,000 2,360 18%
Other Expenses 2,258 2,007 2,212 2,085 2,402 6% 15% 8,054 8,728 8%
EBITDA 2,339 2,216 3,037 2,489 2,549 9% 2% 8,768 10,358 18%
Depreciation 761 639 630 635 701 -8% 10% 2,822 2,604 -8%
Interest 20 18 20 29 23 13% -21% 8 9 9%
PBT 2,095 2,042 3,200 2,417 2,270 8% -6% 7,419 10,035 35%
Tax 557 556 802 673 573 3% -15% 2,087 2,616 25%
PAT 1,538 1,486 2,398 1,745 1,709 11% -2% 5,451 7,591 39%

Results in-line, posted strong double digit revenue growth

Maruti reported results in line with our estimates. Net sales stood at Rs.18333 crore in 4QFY17 a
Utility Vehicles growth of 20% over same quarter previous year. This was driven by 15% volume growth and 4.5%
volume grew by realization growth YoY.
72% Domestic volumes grew by 15%YoY to 382618 units during 4QFY17. Compact segment saw a
growth of 21% and utility vehicle segment grew by 72% YoY during the quarter. Fast growing UV
and Compact segment demand is driven by Vitara Brezza and Baleno. These two models enjoys a
waiting period of 5 and 7 months waiting period respectively.

Exports volumes have seen growth of 18%YoY backed by exposure in the new geographies and
increase in the Baleno volumes exported to Japan.
Realization improved by 4.6%YoY to Rs.442000 per car on account of better product mix and price
increases taken during the quarter.
Royalty rate for the quarter stood at Rs.948 crore.

Volume (in No.) Growth YoY Realization (Rs./car) Realization Growth (QoQ)

450,000 18% 20% 450,000 7%

17% 16%
400,000 14% 18% 440,000 6%
15% 430,000
350,000 10% 16%
13% 12% 420,000 2% 5%
300,000 14% 6%
410,000 0% 0% 2% 0% 4%
12% 1%
250,000 400,000
7% 2% 10% 2% 1% 3%
200,000 390,000 2% 1% 2%
4% 3% 8% 380,000 2%
150,000 6% 370,000
401,227

424,373

428,400

426,382

435,500
379,138

382,216

388,243

392,973

393,313

392,013

1%
299,894

323,911

346,712

341,329

353,335

360,402

348,443

418,470

387,251
321,898

374,182

414,389

442420

100,000 4% 360,000
50,000 2% 350,000 0%
- 0% 340,000 -1%

Please refer to the Disclaimers at the end of this Report

Narnolia Securities Ltd
 Higher Other income supported PAT
Margin % 4QFY16 1QFY17 2QFY17 3QFY17 4QFY17 YoY(+/-) QoQ(+/-) FY16 FY17 YoY(+/-)
Gross Margin 34% 32% 32% 31% 30% -0.04 0.00 33% 31% -0.01
EBITDA Margin 15% 15% 17% 15% 14% -0.01 -0.01 15% 15% 0.00
PAT Margin 10% 10% 13% 10% 9% -0.01 -0.01 9% 11% 0.02

Gross Margin contracted by 360bps YoY and 40bps QoQ due to increasing commodity prices and
higher discounts on the mini segment cars during the quarter.
EBITDA Margin also declined by 130bps YoY to 13.9% on account of higher marketing and
promotional expenses. New launches and Ciaz movement to Nexa also led to increase in the other
expenses.
PAT grew by 15.8%YoY to Rs.1709 crore on account of higher other income. PAT margin declined by
40bps YoY and 100bps QoQ in 4QFY17.

EBITDA (Rs. Crore) EBITDA Margin PAT (Rs. Crore) PAT Margin
17%
3,500 16% 16% 16% 18% 3,000 16%
15% 15% 15% 13%
3,000
14% 14% 16% 14%
12% 13%
2,500
12% 14% 11%
10% 10% 10% 12%
2,500 9% 9%
12% 2,000 9%
8% 10%
2,000 10% 7% 7%
1,500 6% 8%
1,500 8%
6%
6% 1,000
1,000
1,284
1,193
1,497
1,183
1,538
1,486
2,398
1,745
1,709
4%
4%
762
863
802
500
1,328

1,521

2,164

2,189

2,245

2,339

2,216

2,489

2,549
1,593

2,145

3,037

500 2%
2%
- 0% - 0%

Concall Highlights:
Confident of double digit growth in next fiscal.
Confident of
The management do not see any kind of slow down in demand for next financial year.
double digit
Exports Revenue in FY17 stood at Rs. 6000 crore.
volume growth
in domestic The company will maintain its market share going forward.
market. Capex plan-Rs.4500 crore; large chunk of it would be for new models and rest is for R&D expenses
and maintenance of old plants.
Gujarat plant started production in 4QFY17 and initially, it will produce 20,000 units per month.
Management expects that the industry is going to benefit hugely from GST.
Maruti have been working with its suppliers and dealers to make sure that they are absolutely ready
for GST.
The company has asked its vendors to work with their tier II and tier III suppliers to make sure that
they also become GST compliant by July 1.

Export There is no improvement in the sales from government employees.

outlook Tax rate will be same as FY17
subdued in Exports outlook remain subdued because of dollar avaiability issue in African countries and change in
FY18. the duty structure in Sri-Lanka which was bigger market for Maruti.
Fleet segment is 6% of overall sales for Maruti.

Please refer to the Disclaimers at the end of this Report

Narnolia Securities Ltd
 Investment Arguments:
Higher fixed cost and depreciation on Gujarat Plant- Gujarat plant has already started production
and it will take atleast 6-9 months to fully ramp up. Till the time plant gets ramp up the company has to
incur high fixed cost and depreciation on the plant. Thus the company can get the benefit of operating
leverage from FY19 only.

Increasing Annual Budget on Old Plants- Plants and machineries at Gurugram and Manesar plants
more than 25 years older so the maintenance cost of these plants are high and the manegement has
stated that the capex would be 800 crore for FY18 but it may go up going ahead.
International market to remain subdued- Maruti is facing challenges in establishing its footprint in
the exports. Africa market is facing dollar availability issue from last one and half years and Another
big market for Maruti was Sri-Lanka where the government has changed the duty structure. Japan and
Europe are the two markets where Maruti is exporting significant volumes.

New Launches by rivals in the premium segment- Maruti has taken the benefit of selling preimium
segment cars as a market leader in the Indian market but going forward competitors like Tata Motors,
Honda and Ford will share the pie with Maruti. These companies have been started spending huge
amount on R&D to take advantage of future demand.

Reducing dependency on Yen to improve profitability- Maruti is also aggressively working towards
bringing down the import content in its cars from an average 16% at the end of FY16 to 10% as part of
its vision 2.0 plan. Currently about 14 percent of imports are yen denominated. Management expects
to bring it down to 5 percent and typically, 1% movement in yen leads to around 1% change in the
operating profit of Maruti. The company also have rupee denominated Royalty contracts with the
parent Suzuki Motors for new models.

Mix changes towards Utility Vehicles Capacity and Utilization Trend

Mini Compact Super Compact Mid size Total Capacity(in units) Utilization Trend
Utility Vehicles Vans Export 2000000 120%
1800000 93%
97% 95%
120% 90% 90% 100%
1600000 86%
76%
100% 7% 7% 8%
1400000 80%
10% 9% 8% 8%
10% 10% 10% 10% 10% 10% 9% 10% 1200000
80% 5% 6% 7% 8% 11% 13% 13% 13%
4% 3% 4% 4% 0% 1000000 60%
4% 4% 4% 4%
60% 800000
38% 38% 38% 37% 40%
38% 35% 37% 39% 600000
40%
1260000

1510000

1510000

1650000

1760000
1260000

1510000

400000 20%
20% 31% 31% 30% 30% 27% 27% 27% 25% 200000
0% 0 0%

View & Valuation

Successful new launches in the recent past have kept Maruti on the driving seat with the market
share of 47%. With the commissioning of Gujarat facility in the 4QFY17 waiting period for Baleno will
reduce going forward. However, we expect that it will ramp up only by the second half of FY18 and
till then the company has to incur high depreciation and fixed cost on the plant which may result in
negative operating leverage for Maruti. We expect 120 bps deterioration in RoE from 20.2% in FY17
to 19% in FY19E. Going ahead lower PAT growth compared to previous years gives us a very little
cushion on the valuation front and at the present price level valuation is little stretched. Hence, we
change our rating from BUY to Neutral with the target price of Rs. 6450 .

Please refer to the Disclaimers at the end of this Report

Narnolia Securities Ltd
 Financials Snap Shot
Income Statement Rs in Crores Key Ratios
Y/E March FY16 FY17 FY18E FY19E Y/E March FY16 FY17 FY18E FY19E
Revenue from Operation 57,589 68,085 71,496 79,796 ROE 19% 20% 18% 19%
Change (%) 13% 18% 24% 17% ROCE 21% 21% 19% 20%
Other Operating Income Asset Turnover 1.4 1.3 1.3 1.3
EBITDA 8,768 10,358 10,848 12,231 Debtor Days 8.79 6.45 6.45 6.45
Change (%) 28% 18% 24% 18% Inventory Days 20.3 17.5 17.5 17.5
Margin (%) 15% 15% 15% 15% Payable Days 45 45 45 45
Dep & Amortization 2,822 2,604 2,970 2,610 Interest Coverage 0.0 0.0 0.0 0.0
EBIT 5,947 7,754 7,878 9,621 P/E 21 26 26 21
Interest & other finance cost 82 89 156 166 Price / Book Value 4.0 5.2 4.6 4.0
Other Income 1,481 2,290 2,293 2,863 EV/EBITDA 13 19 18 16
EBT 7,345 9,954 10,016 12,318 FCF per Share 1,265 2,517 2,937 2,896
Exceptional Item - - - - Dividend Yield 0.9% 1.2% 1.2% 1.2%
Tax 2,087 2,616 2,739 3,303
Minority Int & P/L share of Ass. 119 173 173 173 Assumptions
Reported PAT 5,377 7,511 7,449 9,188 Y/E March FY16 FY17 FY18E FY19E
Adjusted PAT 5,377 7,511 7,449 9,188 Volume ('000) 1,429 1,569 1,724 1,886
Change (%) 41% 40% 39% 22% Volume Growth 11% 10% 10% 9%
Margin(%) 9% 11% 10% 12% Realization(Rs./vehicle) 4,02,932 4,34,062 4,14,710 4,23,094
Realization Growth 3% 8% -4% 2%
Capex(Rs crore) 3,249 3,500 2,000 2,000

Balance Sheet Rs in Crores Cash Flow Statement Rs in Crores

Y/E March FY16 FY17 FY18E FY19E Y/E March FY16 FY17E FY18E FY19E
Share Capital 151 151 151 151 PBT 6,630 9,954 10,016 12,318
Reserves 27,598 36,924 41,647 48,108 (inc)/Dec in Working Capital 9,089 14,348 11,264 15,267
Networth 27,749 37,075 41,798 48,259 Non Cash Op Exp 2,867 2,604 2,970 2,610
Debt 237.8 483.6 484.0 484.0 Interest Paid (+) 94 89 156 166
Other Non Current Liab 900 1,633 1,085 1,085 Tax Paid (1,948) (2,616) (2,739) (3,303)
Total Capital Employed 27,987 37,559 42,282 48,743 others 941 358 (108) 926
Net Fixed Assets (incl CWIP) 13,989 14,563 13,370 12,442 CF from Op. Activities 8,584 11,917 8,243 12,717
Non Current Investments 17,512 26,972 28,950 35,398 (inc)/Dec in FA & CWIP (2,424) (3,178) (1,777) (1,682)
Other Non Current Assets 9 1,603 1,862 1,862 Free Cashflow 6,160 8,739 6,467 11,035
Non Current Assets 32,866 43,162 44,220 49,740 (Pur)/Sale of Investment (4,785) (1,304) (1,551) (1,691)
Inventory 3,200 3,264 3,427 3,825 others (110) (8,095) (1,978) (6,448)
Debtors 1,387 1,203 1,263 1,410 CF from Inv. Activities (7,319) (9,399) (5,306) (9,821)
Cash & Bank 77 24 79 83 inc/(dec) in NW
Other Current Assets 270 1,541 1,583 1,583 inc/(dec) in Debt (226) 246 0 -
Current Assets 7,404 8,798 10,343 12,582 Interest Paid (104) (89) (156) (166)
Creditors 7,127 8,369 8,788 9,809 Dividend Paid (inc tax) (909) (2,727) (2,727) (2,727)
Provisions 2,137 472 491 546 others
Other Current Liabilities 2,408 1,828 1,919 2,142 CF from Fin. Activities (1,239) (2,570) (2,882) (2,892)
Curr Liabilities 11,369 12,753 11,180 12,478 Inc(Dec) in Cash 26 (53) 55 4
Net Current Assets (3,965) (3,955) (838) 104 Add: Opening Balance 43 77 24 79
Total Assets 40,270 51,961 54,563 62,322 Closing Balance 69 24 79 83

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Narnolia Securities Ltd
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